Agrobank Introduces Machinery And Equipment Financing (Maef-i) – New Shariah-compliant Facility Supports Farmers To Own Machinery And Equipment For Agriculture
Alor Setar, Kedah â€“ The Minister of Agriculture & Agro-based Industry, YB Datoâ€™ Sri Ismail Sabri today launched Agrobankâ€™s new financing facility known as Machinery and Equipment Financing (MAEF-i) which provides Shariah- compliant financing option for farmers and operators to purchase machinery and equipment for their agriculture activities.
The financing includes purchase of agriculture and manufacturing machineries, equipment, lorries or utility vehicle that are used directly or indirectly for the production, processing and marketing of agriculture products or agro-based products.
The launch was held in conjunction with the â€œJihad Memerangi Orang Tengahâ€ initiative, jointly organised by MADA (Lembaga Kemajuan Pertanian Muda) and Agrobank. Also present at the launch were YH Datoâ€™ Wan Mohd Fadzmi Wan Othman, President/ Chief Executive Officer of Agrobank and YBhg Datoâ€™ Othman bin Aziz, Chairman of MADA.
According to YH Datoâ€™ Wan Mohd Fadzmi, the facility offered will make the farmers less dependent on the middlemen. By having their own equipment and machineries, they will be able to minimise the production cost thus increase their income. In his speech, Datoâ€™ Wan Mohd Fadzmi highlighted that MAEF-i financing cover machinery and equipment in the production, processing or marketing of agriculture products and not only limited to agriculture sector. The financing includes machines and equipment such as harvester, backhoe loader, power generator, machinery (including 2 or 4 wheel plough machines) and also purchase of lorry and other vehicles for usage related to agriculture activities.
Among the benefits of MAEF-i include:
â€¢ Financing up to 90% of the cost of new machinery or equipment
â€¢ Financing up to 80% of the cost of used machinery, as compared to only 70% of options in the market
â€¢ Longer payment period up to 84 months
â€¢ Tailored made to customers financing needs
Since it was introduced last May, Agrobank has received a total of 122 loan applications under MAEF-I amounting to RM18.1 million. A total of RM5.79 million has been approved for 52 farmers out of which RM2.15 million was from the Northern region (Penang, Kedah and Perlis). Agrobank is targeting to approve loan amount of RM12 million for MAEF-i by end of this year.